Credit Report

Credit Report
What is in a credit report? A credit report is a snapshot
of your current obligations to creditors. These creditors
include credit card companies, mortgage companies, banks,
and retail stores. Lenders are permitted by law to check
your credit report and review it in order to determine
whether or not to grant credit to you. In order to build a
credit report all you have to do is establish credit in the
form of a bank loan, credit card account, car loan,
mortgage, or student loan. Information on your credit
report comes directly from your history with accounts you
currently have outstanding loans with. Whether you pay your
obligations on time or not, lenders will report that
information to the credit bureaus. There are four
categories.

1. Your personal information: Your credit report identifies
you will the following information.

• Your name
• Social Security number
• Current address • Previous address
• Birth date
• Current employer and previous employers
• Phone number

2. Your credit history: Your credit history will show your
payment history with current lenders such as:

• Credit Card companies
• Mortgage companies
• Retail stores
• Finance companies

3. Inquiries: This is where lenders are finance companies
have requested your credit report. The rule of thumb is
“the less inquiries the better.”

4. Public Records: Your credit report lists any obligations
that may affect your credit including the following:

• Judgments
• Tax Liens
• Bankruptcies

Credit Reports are now available to any organization that
is trying to grant you credit, or a company considering
hiring you. Your personal credit report is so important
during this day and age that you need to have a current
copy to see what they are seeing. Even landlords are
pulling credit in order to grant you permission to rent
from them. With all this in mind, it is highly recommended
that you have recent copy of your credit report, so that
you are aware whats being reported in regards to your
personal credit history. Most of the companies that provide
credit reports, dont understand credit, they just sell you
a credit report.There are also websites that offer a credit
report for Free but fail to mention that you will not get a
free credit score. Make sure when you obtain a copy of your
credit report it comes with all 3 reports and score. It
makes no sense to get copy of your credit report without
your scores since creditors look heavily at your credit
scores. Remember "your Credit is your Life."

----------------------------------------------------
http://www.my720fico.com is the leading resource on the web
for credit reports and credit scores. We should know since
we are lenders.

The Leaseback Scheme

The Leaseback Scheme
This scheme can be a great way to buy new build or newly
refurbished property if getting a fixed rate of return on
your investment is a high priority and you don't mind
restrictions on the amount of time you can use it.
Essentially what you are doing when you enter this type of
contract is buying a freehold property but granting its
lease to a holiday company for a period of between 9 and 11
years where the rental return is fixed and guaranteed
regardless of whether it is rented out or not. They are
hence normally located in popular holiday resorts. It is
possible to get a higher return from renting the property
during the summer months yourself but this of course brings
with it a risk and hassle factor.

Refunded VAT: One of the great bonuses of this scheme is
that the purchaser gets a full refund of the TVA (VAT) of
19.6% if it is a new build property which is either
refunded 6-9 months after the purchase or paid and
reclaimed by the developer in which case the purchaser
never has to pay it. At the end of the initial lease period
the holiday company usually reserves the right to lease it
again until the 20th year after its construction but this
is very rarely insisted upon if the client is not in
agreement. If you choose not to lease your apartment out
again or sell it then you will have to pay a proportion of
the TVA according to how many years are left outstanding
from the first 20 years. For example, if the property has
been under lease contract for 11 years and there are
therefore 9 years remaining, then the amount of TVA that
must be paid back to the French government is 9/20ths of
the TVA. After 20 years TVA is no longer payable. Remember,
if you sell the property during its lease contract then it
must be sold with the contract intact to a likeminded
individual who is prepared to see the contract through.

Guaranteed return on investment: The guaranteed investment
return will typically be around the 5% mark net of all
costs tax-free as you benefit from non-professional lessor
of furnished property status (LMNP). This in effect means
that you will receive as much interest as you would in a
high yielding savings account as well as the opportunity to
gain from capital appreciation of the property.

Personal Use: Leasebacks often allow the owner the option
to occupy the property for a number of weeks a year in
return for slightly lower investment yields. If you choose
not to use the weeks then you will usually get a higher
annual yield.

The management company: An experienced management company
will take care of the entire maintenance of the apartment
or villa, usually with hotel services available such as
reception, house linen, well-kept gardens, swimming pools
and 24hr security.

Furnishing: All furnishing, decoration and electrical
appliances are supplied and taken care of by the management
company.

Accounting impacts during the loan's term:

-Deductibility of the loan interest
- Deductibility of miscellaneous expenses (property taxes)
- Amortisation deductibility; 3.3% per year for 30 years,
however they are deferred and not imputable in regard to
the business income.

After the loan's term the deferred amortisation can be
imputed and set against the received net rents.

Notary Fees and sales process: The sales process follows
the same routine as for new build properties with the same
corresponding notary fees: 3% on new builds and for
refurbished leaseback properties you will have to pay the
usual 7-8% notary fees on the property before refurbishment
working out at between 4% and 6% of the value of the
purchase price.

Better than Timeshare: Unlike time share schemes the owner
actually sees a return on his/her investment through annual
rental yields and also appreciation in the value of the
property which can be substantial- so it is not money down
the drain. The bonus though with these schemes is that like
time share the property will be well maintained by the
holiday company with no responsibility for changing of
linen and cleaning- you simply turn up during your chosen
weeks and enjoy it!

----------------------------------------------------
Written by Nick Dowlatshahi Managing Director of Leapfrog
Properties who are French Property agents that specialise
in Property for sale in France.
http://www.leapfrog-properties.com